RoboForex has embarked on a restructuring of its business as the company decided to phase out its binary options offering RoboOption. The firm has decided to focus its efforts on the foreign exchange and CFDs market instead, with a forward looking single share CFDs offering in the coming months.
RoboOption was the brand name for the Cyprus Securities and Exchange Commission (CySEC) regulated RoboForex (CY) Ltd. The binary options offering of the company has been fully regulated and was focusing on a market which is now increasingly under scrutiny by CySEC and other regulators.
The other offerings of the RoboForex will remain unchanged with the firm focusing on some new projects.
At this stage we see market prospects in the development of stock trading in shares and currencies
The business development manager at RoboForoex group, Anton Ivanov, confided to Finance Magnates reporters: “At this stage we see market prospects in the development of stock trading in shares and currencies. Our full function exchange platform for trading in shares is in beta testing mode. Now this is one of the key focus areas for us. Binary options are often chosen by the first-time investors, who think that option is a simple product, but it is not.”
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“We have better solutions for first-time traders: our CopyFX and RAMM (Risk Allocated Management Model), where copying trades or trading strategies is combined with advanced risk control.”
With some brokers feeling the pinch from recent CySEC circulars which have mandated Cyprus Investment Firms (CIFs) to shut down call centers and shift their sales models, the rationale for the shutdown of RoboOption was different.
The latest circulars of the CySEC had no influence on our decision
Commenting on the matter, Ivanov said: “The latest circulars of the Commission had no influence on our decision. We work in full compliance with all requirements of CySEC circulars. The company adhered to and will continue adhering to all rules and regulations. The closure of the project was mandated by its economics and our aim to optimize human resources to maintain our services.”
Asked whether he sees further consolidation in the binary options industry, he said: “Business consolidation is a natural process that happens in all areas. It is too early to speak about consolidation in the binary options market. There are many brokers that differ from each other by business models, and clear rules and regulations are not in place. Nevertheless, the process of consolidation has already started and it will continue over time.”